The WTI Crude Oil markets rose during the session on Friday, testing the $105 level just above. This is an area that I believe will get broken above, and that should signal a significant move in this market. As you can see by the chart that I have included with this article, there is a potential ascending triangle, and it measures a total of $8 from top to bottom. That means that the market should add another $8 on the breakout, which I see as $105 obviously. That gives me a target of $113, and as a result on a breakout I will be buying this market and hanging on in the meantime.
I believe that pullback should offer buying opportunities that we breakout, and then this market may suddenly become a “one-way bet.” With that being the case, I have absolutely no scenario in which I want to sell this market, and as a matter of fact, I would be willing to buy this market on a pullback as well.
Obvious technical analysis signals.
There are few things in a like more than an obvious technical analysis signal in a market. On top of that, the light sweet crude market tends to be very technical in nature, so this just simply adds to my interest in this market. This signal is one that will be seen by just about everybody in the marketplace, and as a result I believe that the move will bring almost everybody looking for the obvious profits.
Every once in a while, we will have to take a break but I believe that simply will offer value as the market drops. Once we break above the $105 level, I believe that will become a massive “floor”, and as a result I would be all over a supportive candle at that level after we break out as well. In fact, I believe that’s exactly what most traders will do so having said that this market really should do well during the course of the summer. Selling is not an option at this point in time.
